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Dell Technologies (DELL) Surges 7.9%: Is This an Indication of Further Gains?

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Dell Technologies (DELL - Free Report) shares soared 7.9% in the last trading session to close at $87.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.8% loss over the past four weeks.

Dell is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications.

This computer and technology services provider is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of -3.9%. Revenues are expected to be $22.18 billion, down 11.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Dell Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DELL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Dell Technologies is part of the Zacks Computers - IT Services industry. C3.ai, Inc. (AI - Free Report) , another stock in the same industry, closed the last trading session 1.7% higher at $26.63. AI has returned 2.9% in the past month.

C3.ai, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.28. Compared to the company's year-ago EPS, this represents a change of -366.7%. C3.ai, Inc. currently boasts a Zacks Rank of #3 (Hold).


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